feng-6k_20210510.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

May 2021

Commission File Number: 001-35158

 

PHOENIX NEW MEDIA LIMITED

 

Sinolight Plaza, Floor 16

No. 4 Qiyang Road

Wangjing, Chaoyang District, Beijing, 100102

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F                 Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes              No  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

 

 

 


TABLE OF CONTENTS

 

Exhibit 99.1 — Press release: Phoenix New Media Reports First Quarter 2021 Unaudited Financial Results

 

2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

 

 

 

 

PHOENIX NEW MEDIA LIMITED

 

 

 

 

By:

 

/s/ Edward Lu

 

 

Name:

 

Edward Lu

 

 

Title:

 

Chief Financial Officer

 

Date: May 10, 2021

 

 

 

3

feng-ex991_6.htm

Exhibit 99.1

 

Phoenix New Media Reports First Quarter 2021 Unaudited Financial Results

 

Live Conference Call to be Held at 9:00 PM U.S. Eastern Time on May 10, 2021

 

BEIJING, China, May 11, 2021 — Phoenix New Media Limited (NYSE: FENG) (“Phoenix New Media”, “ifeng” or the “Company”), a leading new media company in China, today announced its unaudited financial results for the first quarter ended March 31, 2021.

 

Mr. Shuang Liu, CEO of Phoenix New Media, commented, “During the first quarter of 2021, we adapted to the evolving advertising landscape and implemented active measures to increase user traffic, enhance user engagement, and improve user retention. Those measures include producing more exclusive, premium, and original content, leveraging social media distribution to reach a broader audience, and augmenting our premium content pool operations. In addition, we continued to explore new business initiatives to diversify our revenue sources and increase our ability to manage macro risks. Going forward, we will continue to focus on fortifying our leadership in news reporting, expanding our new media influence to build a solid foundation for sustainable growth. We seek to leverage our core competencies to capitalize on emerging opportunities as the economy recovers in 2021.”

 

Mr. Edward Lu, CFO of Phoenix New Media, further stated, “Certain segment of our advertising business experienced continued pressure during the first quarter of 2021, thus causing our net advertising revenue to decline slightly year over year. However, thanks to our continued efforts in diversifying our revenue streams, the growth in our paid services revenues partially offset the decline in our net advertising revenues. This led to our total revenues remaining relatively steady on a year-over-year basis. Going forward, we believe that the recovery of our brand advertising business, combined with the progress we have achieved in various new business initiatives, is setting the stage for a revitalization of our future growth.”

 

First Quarter 2021 Financial Results

 

As disclosed in the second quarter 2020 unaudited financial results announcement made on August 17, 2020, the Company sold all of its investment in Beijing Yitian Xindong Network Technology Co., Ltd. (“Yitian Xindong” or “Tadu”) in the second quarter of 2020 and the disposal of Tadu was qualified for reporting as a “discontinued operation” in the Company’s financial statements. Accordingly, Tadu’s results of operations have been excluded from the Company’s results from continuing operations in the condensed consolidated statements of comprehensive income/(loss) and are presented in separate line items as discontinued operations for all prior periods. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

 

REVENUES

 

Total revenues in the first quarter of 2021 decreased by 2.3% to RMB226.1 million (US$34.5 million) from RMB231.4 million in the same period of 2020, primarily due to the year-over-year decline in the Company’s net advertising revenues.

 

Net advertising revenues in the first quarter of 2021 decreased by 3.5% to RMB201.3 million (US$30.7 million) from RMB208.7 million in the same period of 2020, mainly due to the reduction in advertising budgets of advertisers in certain industries in the first quarter of 2021.

  

Paid services revenues1 in the first quarter of 2021 increased by 9.3% to RMB24.8 million (US$3.8 million) from RMB22.7 million in the same period of 2020. Revenues from paid contents in the first quarter of 2021 decreased by 11.8% to RMB10.5 million (US$1.6 million) from RMB11.9 million in the same period of 2020, mainly due to the broader market conditions reflecting the trend towards free online reading. Revenues from E-commerce and others in the first quarter of 2021 increased by 32.4% to RMB14.3 million (US$2.2 million) from RMB10.8 million in the same period of 2020, which was mainly caused by the increase in revenues from E-commerce and online real estate related services. 

 

COST OF REVENUES

 

Cost of revenues in the first quarter of 2021 increased by 2.7% to RMB108.1 million (US$16.5 million) from RMB105.3 million in the same period of 2020. The increase in cost of revenues was mainly due to the following:

 

 

Content and operational costs in the first quarter of 2021 increased by 5.4% to RMB91.7 million (US$14.0 million) from RMB87.0 million in the same period of 2020, mainly caused by the resumption of normal operations in the first quarter of

 

1 

Prior to 2021, paid services revenues comprised of (i) revenues from paid contents, which included digital reading, audio books, paid videos, and
other content-related sales activities, (ii) revenues from games, which included web-based games and mobile games, (iii) revenues from MVAS, and
(iv) revenues from others.

As revenues from games and revenues from MVAS were small and had been declining for the past years, to better reflect the Company’s paid
services revenues disaggregated by products and services, beginning from January 1, 2021, paid services revenues have been re-grouped and
comprise of (i) revenues from paid contents, which includes digital reading, audio books, paid videos, and other content-related sales activities, (ii)
revenues from E-commerce and others, which mainly includes revenues from E-commerce, MVAS, games and others. For comparison purposes, the
revenues from paid services for the quarters of 2020 have been retrospectively re-classified.


 

2021 as compared to decreased operational activities in the same period of 2020 due to COVID-19 impact in China at that time. Share-based compensation included in the content and operational costs in the first quarter of 2021 decreased to RMB0.3 million (US$0.05 million) from RMB1.1 million in the same period of 2020.

 

The increase was partially offset by the following:

 

 

Revenue sharing fees in the first quarter of 2021 decreased by 39.5% to RMB2.6 million (US$0.4 million) from RMB4.3 million in the same period of 2020, mainly due to the decrease in revenue sharing fees paid to telecom operators.

 

 

Bandwidth costs in the first quarter of 2021 decreased slightly to RMB13.8 million (US$2.1 million) from RMB14.0 million in the same period of 2020.

 

GROSS PROFIT

 

Gross profit in the first quarter of 2021 decreased by 6.4% to RMB118.0 million (US$18.0 million) from RMB126.1 million in the same period of 2020. Gross margin in the first quarter of 2021 decreased to 52.2% from 54.5% in the same period of 2020, mainly caused by the year-over-year increase in cost of revenues as well as the year-over-year decrease in revenues in the first quarter of 2021, as explained above.

  

To supplement the financial measures presented in accordance with the United States Generally Accepted Accounting Principles (“GAAP”), the Company has presented certain non-GAAP financial measures in this press release, which excluded the impact of certain reconciling items as stated in the “Use of Non-GAAP Financial Measures” section below. The related reconciliations to GAAP financial measures are presented in the accompanying “Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures.”

 

Non-GAAP gross margin in the first quarter of 2021, excluding share-based compensation, decreased to 52.3% from 55.0% in the same period of 2020.

 

OPERATING EXPENSES AND LOSS FROM OPERATIONS

 

Total operating expenses in the first quarter of 2021 decreased by 18.8% to RMB159.9 million (US$24.4 million) from RMB197.0 million in the same period of 2020, mainly due to the decrease in the Company’s traffic acquisition expenses and the personnel-related expenses caused by the Company’s strict cost control measures taken to enhance its operating efficiency. Share-based compensation included in operating expenses in the first quarter of 2021 was RMB1.0 million (US$0.2 million), compared to RMB1.6 million in the same period of 2020.

 

Loss from operations in the first quarter of 2021 was RMB41.9 million (US$6.4 million), compared to RMB70.9 million in the same period of 2020. Operating margin in the first quarter of 2021 was negative 18.6%, compared to negative 30.7% in the same period of 2020.

 

Non-GAAP loss from operations in the first quarter of 2021, which excluded share-based compensation, was RMB40.7 million (US$6.2 million), compared to RMB68.3 million in the same period of 2020. Non-GAAP operating margin in the first quarter of 2021, excluding share-based compensation, was negative 18.0%, compared to negative 29.5% in the same period of 2020.

 

OTHER INCOME OR LOSS

 

Other income or loss reflects net interest income, foreign currency exchange gain or loss, income or loss from equity method investments, net of impairment, changes in fair value of forward contract in relation to disposal of investments in Particle and others, net2. Total net other income in the first quarter of 2021 was RMB12.5 million (US$1.9 million), compared to RMB24.3 million in the same period of 2020.

 

 

Net interest income in the first quarter of 2021 increased to RMB10.7 million (US$1.6 million) from RMB6.4 million in the same period of 2020.

  

 

Foreign currency exchange loss in the first quarter of 2021 was RMB2.8 million (US$0.4 million), compared to RMB1.7 million in the same period of 2020.

 

 

Loss from equity method investments, net of impairment, in the first quarter of 2021 was RMB0.1 million (US$0.02 million), compared to RMB0.2 million in the same period of 2020. 

 

 

Changes in fair value of forward contract in relation to disposal of investments in Particle in the first quarter of 2021 was nil, compared to a gain of RMB14.7 million in the same period of 2020.

 

 

2 “Others, net” primarily consists of government subsidies and litigation loss provisions.


 

Others, net, in the first quarter of 2021 decreased to RMB4.7 million (US$0.7 million), from RMB5.1 million in the same period of 2020.

 

NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO PHOENIX NEW MEDIA LIMITED

 

Net loss from continuing operations attributable to Phoenix New Media Limited in the first quarter of 2021 was RMB29.2 million (US$4.5 million), compared to RMB38.6 million in the same period of 2020. Net margin from continuing operations in the first quarter of 2021 was negative 12.9%, compared to negative 16.7% in the same period of 2020. Net loss from continuing operations per diluted ordinary share in the first quarter of 2021 was RMB0.05 (US$0.01), compared to a net loss from continuing operations per diluted ordinary share of RMB0.07 in the same period of 2020.

 

Non-GAAP net loss from continuing operations attributable to Phoenix New Media Limited, which excluded share-based compensation, income or loss from equity method investments, net of impairment, and changes in fair value of forward contract in relation to disposal of investments in Particle as applicable, was RMB27.8 million (US$4.2 million) in the first quarter of 2021, compared to RMB50.5 million in the same period of 2020. Non-GAAP net margin from continuing operations in the first quarter of 2021 was negative 12.3%, compared to negative 21.8% in the same period of 2020. Non-GAAP net loss from continuing operations per diluted ADS3 in the first quarter of 2021 was RMB0.38 (US$0.06), compared to RMB0.69 in the same period of 2020.

 

In the first quarter of 2021, the Company’s weighted average number of ADSs used in the computation of diluted net loss per ADS was 72,790,541. As of March 31, 2021, the Company had a total of 582,324,325 ordinary shares outstanding, or the equivalent of 72,790,541 ADSs.

 

CERTAIN BALANCE SHEET ITEMS

 

As of March 31, 2021, the Company’s cash and cash equivalents, term deposits and short term investments and restricted cash were RMB1.58 billion (US$240.9 million).

 

Business Outlook

 

For the second quarter of 2021, the Company expects its total revenues to be between RMB263.8 million and RMB283.8 million; net advertising revenues are expected to be between RMB244.8 million and RMB259.8 million; and paid services revenues are expected to be between RMB19.0 million and RMB24.0 million.

 

All of the above forecasts reflect the current and preliminary view of the Company’s management, which are subject to change and substantial uncertainty, particularly in view of the potential impact of the COVID-19 outbreak, the effects of which are difficult to analyse and predict.

 

Conference Call Information

 

The Company will hold a conference call at 9:00 p.m. U.S. Eastern Time on May 10, 2021 (May 11, 2021 at 9:00 a.m. Beijing/Hong Kong time) to discuss its first quarter 2021 unaudited financial results and operating performance.

 

To participate in the call, please register in advance of the conference by navigating to http://apac.directeventreg.com/registration/event/2227658. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email. Please dial in 10 minutes prior to the call, using the participant dial-in numbers, Direct Event Passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process.

 

A replay of the call will be available through May 19, 2021 by using the dial-in numbers and conference ID below:

 

International:

 

+61 2 8199 0299

Mainland China:

 

4006322162

Hong Kong:

 

+852 30512780

United States:

 

+1 646 254 3697

Conference ID:

 

2227658

  

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.ifeng.com.

 

 

3 “ADS” means American Depositary Share of the Company. Each ADS represents eight Class A ordinary shares of the Company.


Use of Non-GAAP Financial Measures

 

To supplement the consolidated financial statements presented in accordance with the United States Generally Accepted Accounting Principles (“GAAP”), Phoenix New Media Limited uses non-GAAP gross profit, non-GAAP gross margin, non-GAAP income or loss from operations, non-GAAP operating margin, non-GAAP net income or loss from continuing operations attributable to Phoenix New Media Limited, non-GAAP net margin from continuing operations and non-GAAP net income or loss from continuing operations per diluted ADS, each of which is a non-GAAP financial measure. Non-GAAP gross profit is gross profit excluding share-based compensation. Non-GAAP gross margin is non-GAAP gross profit divided by total revenues. Non-GAAP income or loss from operations is income or loss from operations excluding share-based compensation and impairment of goodwill. Non-GAAP operating margin is non-GAAP income or loss from operations divided by total revenues. Non-GAAP net income or loss from continuing operations attributable to Phoenix New Media Limited is net income or loss from continuing operations attributable to Phoenix New Media Limited excluding share-based compensation, impairment of goodwill, income or loss from equity method investments, net of impairment, gain on disposal of available-for-sale debt investments and changes in fair value of forward contract in relation to disposal of investments in Particle. Non-GAAP net margin from continuing operations is non-GAAP net income or loss from continuing operations attributable to Phoenix New Media Limited divided by total revenues. Non-GAAP net income or loss from continuing operations per diluted ADS is non-GAAP net income or loss from continuing operations attributable to Phoenix New Media Limited divided by weighted average number of diluted ADSs. The Company believes that separate analysis and exclusion of the aforementioned non-GAAP to GAAP reconciling items add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with the related GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that using these non-GAAP financial measures to evaluate its business allows both management and investors to assess the Company’s performance against its competitors and ultimately monitor its capacity to generate returns for investors. The Company also believes that these non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of items like share-based compensation, income or loss from equity method investments, net of impairment, which have been and will continue to be significant recurring items, and without the effect of impairment of goodwill, gain on disposal of available-for-sale debt investments and changes in fair value of forward contract in relation to disposal of investments in Particle which have been significant and one-time items. However, the use of these non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using these non-GAAP financial measures is that they do not include all items that impact the Company’s gross profit, income or loss from operations and net income or loss attributable to Phoenix New Media Limited for the period. In addition, because these non-GAAP financial measures are not calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider these non-GAAP financial measures in isolation from, or as an alternative to, the financial measures prepared in accordance with GAAP. 



 

Exchange Rate

 

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.5518 to US$1.00, the noon buying rate in effect on March 31, 2021 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

 

About Phoenix New Media Limited

 

Phoenix New Media Limited (NYSE: FENG) is a leading new media company providing premium content on an integrated Internet platform, including PC and mobile, in China. Having originated from a leading global Chinese language TV network based in Hong Kong, Phoenix TV, the Company enables consumers to access professional news and other quality information and share user-generated content on the Internet through their PCs and mobile devices. Phoenix New Media’s platform includes its PC channel, consisting of ifeng.com website, which comprises interest-based verticals and interactive services; its mobile channel, consisting of mobile news applications, mobile video application, digital reading applications and mobile Internet website; and its operations with the telecom operators that provides mobile value-added services.

 

Safe Harbor Statement

 

This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Phoenix New Media’s strategic and operational plans, contain forward−looking statements. Phoenix New Media may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Phoenix New Media’s beliefs and expectations, are forward−looking statements. Forward−looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; the expected growth of online and mobile advertising, online video and mobile paid services markets in China; the Company’s reliance on online and mobile advertising for a majority of its total revenues; the Company’s expectations regarding demand for and market acceptance of its services; the Company’s expectations regarding maintaining and strengthening its relationships with advertisers, partners and customers; the Company’s investment plans and strategies, fluctuations in the Company’s quarterly operating results; the Company’s plans to enhance its user experience, infrastructure and services offerings; competition in its industry in China; relevant government policies and regulations relating to the Company; and the effects of the COVID-19 on the economy in China in general and on the Company’s business in particular. Further information regarding these and other risks is included in the Company’s filings with the SEC, including its registration statement on Form F−1, as amended, and its annual reports on Form 20−F. All information provided in this press release and in the attachments is as of the date of this press release, and Phoenix New Media does not undertake any obligation to update any forward−looking statement, except as required under applicable law.

 

For investor and media inquiries please contact:

 

Phoenix New Media Limited

Qing Liu

Email: investorrelations@ifeng.com

 

ICR, Inc.

Jack Wang

Tel: +1 (646) 405-4883

Email: investorrelations@ifeng.com

 

 



 

Phoenix New Media Limited

Condensed Consolidated Balance Sheets

(Amounts in thousands)

 

 

December 31,

 

 

March 31,

 

 

March 31,

 

 

 

2020*

 

 

2021

 

 

2021

 

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

Audited

 

 

Unaudited

 

 

Unaudited

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

357,796

 

 

 

393,550

 

 

 

60,067

 

Term deposits and short term investments

 

 

1,280,033

 

 

 

1,159,786

 

 

 

177,018

 

Restricted cash

 

 

31,039

 

 

 

25,093

 

 

 

3,830

 

Accounts receivable, net

 

 

675,616

 

 

 

578,900

 

 

 

88,357

 

Amounts due from related parties

 

 

32,587

 

 

 

34,859

 

 

 

5,321

 

Prepayment and other current assets

 

 

42,846

 

 

 

48,602

 

 

 

7,418

 

Total current assets

 

 

2,419,917

 

 

 

2,240,790

 

 

 

342,011

 

Non-current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

62,649

 

 

 

56,437

 

 

 

8,614

 

Intangible assets, net

 

 

12,396

 

 

 

12,347

 

 

 

1,885

 

Available-for-sale debt investments

 

 

36,662

 

 

 

35,150

 

 

 

5,365

 

Equity investments, net

 

 

94,821

 

 

 

108,714

 

 

 

16,593

 

Deferred tax assets

 

 

86,867

 

 

 

89,140

 

 

 

13,605

 

Operating lease right-of- use assets, net

 

 

49,487

 

 

 

42,466

 

 

 

6,482

 

Other non-current assets

 

 

9,753

 

 

 

9,293

 

 

 

1,418

 

Total non-current assets

 

 

352,635

 

 

 

353,547

 

 

 

53,962

 

Total assets

 

 

2,772,552

 

 

 

2,594,337

 

 

 

395,973

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

221,203

 

 

 

201,052

 

 

 

30,687

 

Amounts due to related parties

 

 

34,420

 

 

 

32,784

 

 

 

5,004

 

Advances from customers

 

 

38,835

 

 

 

36,528

 

 

 

5,575

 

Taxes payable

 

 

402,610

 

 

 

397,725

 

 

 

60,705

 

Salary and welfare payable

 

 

156,599

 

 

 

88,707

 

 

 

13,539

 

Accrued expenses and other current liabilities

 

 

172,376

 

 

 

129,611

 

 

 

19,782

 

Operating lease liabilities

 

 

36,370

 

 

 

32,385

 

 

 

4,943

 

Total current liabilities

 

 

1,062,413

 

 

 

918,792

 

 

 

140,235

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

1,312

 

 

 

1,312

 

 

 

200

 

Long-term liabilities

 

 

28,182

 

 

 

28,182

 

 

 

4,301

 

Operating lease liabilities

 

 

16,672

 

 

 

10,174

 

 

 

1,553

 

Total non-current liabilities

 

 

46,166

 

 

 

39,668

 

 

 

6,054

 

Total liabilities

 

 

1,108,579

 

 

 

958,460

 

 

 

146,289

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

Phoenix New Media Limited shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Class A ordinary shares

 

 

17,499

 

 

 

17,499

 

 

 

2,671

 

Class B ordinary shares

 

 

22,053

 

 

 

22,053

 

 

 

3,366

 

Additional paid-in capital

 

 

1,620,580

 

 

 

1,621,904

 

 

 

247,551

 

Statutory reserves

 

 

92,017

 

 

 

92,017

 

 

 

14,045

 

Accumulated deficit

 

 

(88,191

)

 

 

(117,364

)

 

 

(17,914

)

Accumulated other comprehensive loss

 

 

(28,214

)

 

 

(27,927

)

 

 

(4,262

)

Total Phoenix New Media Limited shareholders’ equity

 

 

1,635,744

 

 

 

1,608,182

 

 

 

245,457

 

Noncontrolling interests

 

 

28,229

 

 

 

27,695

 

 

 

4,227

 

Total shareholders' equity

 

 

1,663,973

 

 

 

1,635,877

 

 

 

249,684

 

Total liabilities and shareholders’ equity

 

 

2,772,552

 

 

 

2,594,337

 

 

 

395,973

 

 

 * Derived from audited financial statements included in the Company's Form 20-F dated April 28, 2021.

 

 

 

 

 

 

 

 

 

 

 


Phoenix New Media Limited

Condensed Consolidated Statements of Comprehensive Income /(loss)

(Amounts in thousands, except for number of shares and per share (or ADS) data)

Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

March 31,

 

 

2020

 

 

2020

 

 

2021

 

 

2021

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net advertising revenues

 

208,710

 

 

 

336,653

 

 

 

201,313

 

 

 

30,726

 

  Paid service revenues

 

22,666

 

 

 

25,546

 

 

 

24,778

 

 

 

3,782

 

Total revenues

 

231,376

 

 

 

362,199

 

 

 

226,091

 

 

 

34,508

 

  Cost of revenues

 

(105,298

)

 

 

(179,224

)

 

 

(108,104

)

 

 

(16,500

)

Gross profit

 

126,078

 

 

 

182,975

 

 

 

117,987

 

 

 

18,008

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

(81,623

)

 

 

(75,660

)

 

 

(64,843

)

 

 

(9,898

)

General and administrative expenses

 

(70,272

)

 

 

(70,716

)

 

 

(54,828

)

 

 

(8,368

)

Technology and product development expenses

 

(45,111

)

 

 

(42,617

)

 

 

(40,275

)

 

 

(6,147

)

Impairment of goodwill

 

-

 

 

 

(22,786

)

 

 

-

 

 

 

-

 

Total operating expenses

 

(197,006

)

 

 

(211,779

)

 

 

(159,946

)

 

 

(24,413

)

Loss from operations

 

(70,928

)

 

 

(28,804

)

 

 

(41,959

)

 

 

(6,405

)

Other income/(loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

6,402

 

 

 

9,309

 

 

 

10,740

 

 

 

1,639

 

Foreign currency exchange (loss)/gain

 

(1,728

)

 

 

3,921

 

 

 

(2,765

)

 

 

(422

)

Loss from equity method investments, net of impairment

 

(236

)

 

 

(179

)

 

 

(107

)

 

 

(16

)

Gain on disposal of available-for-sale debt investments

 

-

 

 

 

477,254

 

 

 

-

 

 

 

-

 

Changes in fair value of forward contract in relation to disposal of investments in Particle

 

14,744

 

 

 

-

 

 

 

-

 

 

 

-

 

Others, net

 

5,116

 

 

 

8,770

 

 

 

4,670

 

 

 

713

 

(Loss)/income from continuing operations before income taxes

 

(46,630

)

 

 

470,271

 

 

 

(29,421

)

 

 

(4,491

)

Income tax benefit/(expense)

 

757

 

 

 

(14,793

)

 

 

(250

)

 

 

(38

)

Net (loss)/income from continuing operations

 

(45,873

)

 

 

455,478

 

 

 

(29,671

)

 

 

(4,529

)

Net loss from discontinued operations, net of income taxes

 

(44,497

)

 

 

-

 

 

 

-

 

 

 

-

 

Net (loss)/income

 

(90,370

)

 

 

455,478

 

 

 

(29,671

)

 

 

(4,529

)

Net loss/(income) attributable to noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss/(income) from continuing operations attributable to noncontrolling interests

 

7,254

 

 

 

(700

)

 

 

498

 

 

 

76

 

Net loss from discontinued operations attributable to noncontrolling interests

 

22,875

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss/(income) attributable to noncontrolling interests

 

30,129

 

 

 

(700

)

 

 

498

 

 

 

76

 

Net (loss)/income attributable to Phoenix New Media Limited:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income from continuing operations attributable to Phoenix New Media Limited

 

(38,619

)

 

 

454,778

 

 

 

(29,173

)

 

 

(4,453

)

Net loss from discontinued operations attributable to Phoenix New Media Limited

 

(21,622

)

 

 

-

 

 

 

-

 

 

 

-

 

Net (loss)/income attributable to Phoenix New Media Limited

 

(60,241

)

 

 

454,778

 

 

 

(29,173

)

 

 

(4,453

)

Net (loss)/income

 

(90,370

)

 

 

455,478

 

 

 

(29,671

)

 

 

(4,529

)

Other comprehensive loss, net of tax: fair value remeasurement for available-for-sale debt investments

 

-

 

 

 

(2,736

)

 

 

(1,730

)

 

 

(264

)

Other comprehensive loss, net of tax: reclassification adjustment for disposal of available-for-sale debt investments

 

-

 

 

 

(491,197

)

 

 

-

 

 

 

-

 

Other comprehensive income/(loss), net of tax: foreign currency translation adjustment

 

30,428

 

 

 

(41,326

)

 

 

2,017

 

 

 

308

 

Comprehensive loss

 

(59,942

)

 

 

(79,781

)

 

 

(29,384

)

 

 

(4,485

)

Comprehensive loss/(income) attributable to noncontrolling interests

 

30,129

 

 

 

(700

)

 

 

498

 

 

 

76

 

Comprehensive loss attributable to Phoenix New Media Limited

 

(29,813

)

 

 

(80,481

)

 

 

(28,886

)

 

 

(4,409

)

Basic net (loss)/income per Class A and Class B ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   -Continuing operations

 

(0.07

)

 

 

0.78

 

 

 

(0.05

)

 

 

(0.01

)

   -Discontinued operations

 

(0.03

)

 

 

-

 

 

 

-

 

 

 

-

 

Basic net (loss)/income per Class A and Class B ordinary share

 

(0.10

)

 

 

0.78

 

 

 

(0.05

)

 

 

(0.01

)

Diluted net (loss)/income per Class A and Class B ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   -Continuing operations

 

(0.07

)

 

 

0.78

 

 

 

(0.05

)

 

 

(0.01

)

   -Discontinued operations

 

(0.03

)

 

 

-

 

 

 

-

 

 

 

-

 

Diluted net (loss)/income per Class A and Class B ordinary share

 

(0.10

)

 

 

0.78

 

 

 

(0.05

)

 

 

(0.01

)


Basic (loss)/income per ADS (1 ADS represents 8 Class A ordinary shares):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   -Continuing operations

 

(0.53

)

 

 

6.25

 

 

 

(0.40

)

 

 

(0.06

)

   -Discontinued operations

 

(0.30

)

 

 

-

 

 

 

-

 

 

 

-

 

Basic net (loss)/income per ADS (1 ADS represents 8 Class A ordinary shares)

 

(0.83

)

 

 

6.25

 

 

 

(0.40

)

 

 

(0.06

)

Diluted net (loss)/income per ADS (1 ADS represents 8 Class A ordinary shares):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   -Continuing operations

 

(0.53

)

 

 

6.25

 

 

 

(0.40

)

 

 

(0.06

)

   -Discontinued operations

 

(0.30

)

 

 

-

 

 

 

-

 

 

 

-

 

Diluted net (loss)/income per ADS (1 ADS represents 8 Class A ordinary shares)

 

(0.83

)

 

 

6.25

 

 

 

(0.40

)

 

 

(0.06

)

Weighted average number of Class A and Class B ordinary shares used in computing net (loss)/income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

582,324,325

 

 

 

582,324,325

 

 

 

582,324,325

 

 

 

582,324,325

 

   Diluted

 

582,324,325

 

 

 

582,324,325

 

 

 

582,324,325

 

 

 

582,324,325

 

 

 

 



 

Phoenix New Media Limited

Condensed Segments Information

(Amounts in thousands)

 

  

Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

March 31,

 

 

2020

 

 

2020

 

 

2021

 

 

2021

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net advertising service

 

208,710

 

 

 

336,653

 

 

 

201,313

 

 

 

30,726

 

Paid services

 

22,666

 

 

 

25,546

 

 

 

24,778

 

 

 

3,782

 

Total revenues

 

231,376

 

 

 

362,199

 

 

 

226,091

 

 

 

34,508

 

Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net advertising service

 

97,233

 

 

 

165,581

 

 

 

101,255

 

 

 

15,455

 

Paid services

 

8,065

 

 

 

13,643

 

 

 

6,849

 

 

 

1,045

 

Total cost of revenues

 

105,298

 

 

 

179,224

 

 

 

108,104

 

 

 

16,500

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net advertising service

 

111,477

 

 

 

171,072

 

 

 

100,058

 

 

 

15,271

 

Paid services

 

14,601

 

 

 

11,903

 

 

 

17,929

 

 

 

2,737

 

Total gross profit

 

126,078

 

 

 

182,975

 

 

 

117,987

 

 

 

18,008

 

 



 

Phoenix New Media Limited

Condensed Information of Cost of Revenues

(Amounts in thousands)

 

Three Months Ended

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

March 31,

 

 

2020

 

 

2020

 

 

2021

 

 

2021

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

Revenue sharing fees

 

4,256

 

 

 

6,897

 

 

 

2,571

 

 

 

392

 

Content and operational costs

 

87,030

 

 

 

158,458

 

 

 

91,717

 

 

 

13,999

 

Bandwidth costs

 

14,012

 

 

 

13,869

 

 

 

13,816

 

 

 

2,109

 

Total cost of revenues

 

105,298

 

 

 

179,224

 

 

 

108,104

 

 

 

16,500

 

 

 

 


Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures

(Amounts in thousands, except for number of ADSs and per ADS data)

 

 

Three Months Ended March 31, 2020

 

 

Three Months Ended December 31, 2020

 

 

Three Months Ended March 31, 2021

 

 

GAAP

 

 

Non-GAAP

Adjustments

 

 

 

 

Non-

GAAP

 

 

GAAP

 

 

Non-GAAP

Adjustments

 

 

 

 

Non-

GAAP

 

 

GAAP

 

 

Non-GAAP

Adjustments

 

 

 

 

Non-

GAAP

 

 

RMB

 

 

RMB

 

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

 

 

RMB

 

 

Unaudited

 

 

Unaudited

 

 

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

 

 

Unaudited

 

Gross profit

 

126,078

 

 

 

1,141

 

 

(1

)

 

127,219

 

 

 

182,975

 

 

 

229

 

 

(1

)

 

183,204

 

 

 

117,987

 

 

 

268

 

 

(1

)

 

118,255

 

Gross margin

 

54.5

%

 

 

 

 

 

 

 

 

55.0

%

 

 

50.5

%

 

 

 

 

 

 

 

 

50.6

%

 

 

52.2

%

 

 

 

 

 

 

 

 

52.3

%

 

 

 

 

 

 

2,666

 

 

(1

)

 

 

 

 

 

 

 

 

 

2,734

 

 

(1

)

 

 

 

 

 

 

 

 

 

1,288

 

 

(1

)

 

 

 

 

 

 

 

 

 

-

 

 

(2

)

 

 

 

 

 

 

 

 

 

22,786

 

 

(2

)

 

 

 

 

 

 

 

 

 

-

 

 

(2

)

 

 

 

Loss from operations

 

(70,928

)

 

 

2,666

 

 

 

 

 

(68,262

)

 

 

(28,804

)

 

 

25,520

 

 

 

 

 

(3,284

)

 

 

(41,959

)

 

 

1,288

 

 

 

 

 

(40,671

)

Operating margin

 

(30.7

)%

 

 

 

 

 

 

 

 

(29.5

)%

 

 

(8.0

)%